Panamanian Government Considers Issuing Green Bonds

The Government of Panama is considering the possibility of issuing green bonds following the adoption of a sustainable financing framework, which would open the door to partially or fully finance eligible environmental, social, or new and existing projects.

Sergi Lucas, president of the Panamanian Capital Markets Association, expressed his hope that Panama could become a leader in the issuance of green bonds, highlighting the country’s natural ecosystem and its status as one of the few countries in the world with a negative carbon balance.

To date, Panama has over $750 million in thematic bond investments, including around $200 million in green bonds that are currently under review and may eventually be offered to investors.

The potential issuance of green bonds is part of a broader strategy by the Panamanian government to leverage sustainable financing as a key tool in promoting projects that contribute to the country’s environmental and social development.